Bernanke tells teachers they play a role in shaping U.S. economy

John Munson/The Star-LedgerJohn Odin, a history teacher at Rahway high School, asks a question of Federal Reserve Chairman Ben Bernanke during a video conference. A group of local teachers was at the Federal Reserve Bank in New York and the Chairman was in Washington, D.C.

John Odin isn’t prone to the jitters. As a former detective-turned-high school teacher, he’s testified before grand juries and spoken in front of dozens of students — all with calm composure.

But yesterday, as Odin prepared to address Federal Reserve Chairman Ben Bernanke during a nationwide videoconference, he nearly froze.

"I saw him looking at me, and me looking at him, and I thought, ‘Gee, it must be time,’" said Odin, 57, a history and politics teacher at Rahway High School. "It was kind of surreal."

Odin was among more than 300 teachers across the nation who participated in a town hall-style meeting with Bernanke, who fielded questions live from the bank’s headquarters in Washington. Organizers said the event, the first of its kind, was an effort to get more involved with the public and remind educators about the vital role they play in the economy.

The hourlong meeting was orchestrated by gathering teachers from each of the Fed’s 12 regional districts at more than 30 branch locations. Odin was among four New Jersey teachers who took the day off to travel to the Fed’s New York district office in Manhattan.

Bernanke, known for his stoic attitude, appeared enthusiastic yesterday, at times even earnest, as he spoke about the role of education in shaping the economy. Perhaps one of the biggest lessons from the recession is that financial responsibility — such as budgeting and spending within one’s means — should be learned at a young age, he said.

"There’s nothing more important than what you do," said Bernanke, a former Princeton University professor and Montgomery Township school board member. "Your work is critical to the nation, to the economy."

But it wasn’t entirely a pep talk. Some, like Odin, asked questions that stuck to the topic of education, like "What’s the role of education in the future of the economy?"

But other teachers were a bit more bold, posing questions that challenged the Fed’s actions during the financial crisis. One high school teacher from Dallas asked Bernanke what would have happened if the Fed and government had not decided to bail out the banks in 2008.

Bernanke defended the actions, saying the global financial system was "very close to a collapse" and that the U.S. economy probably would have descended into a recession on par with the Great Depression of the 1930s.

But he also stressed that the bailout went against his own moral code.

"Those things were very distasteful to us," he said. "I hope students understand that not everything the government did was right, but it was necessary."

The recently passed Dodd-Frank Act, he added, makes it possible for the FDIC to seize a troubled firm and liquidate it slowly, making government bailouts a thing of the past.

A teacher from Cleveland asked whether members of the Federal Open Market Committee, the group that sets monetary policy, ever disagree on issues.

"My attitude on that is if two people agree all the time, then one of them is redundant," he responded.

Looking ahead, Bernanke said a strong labor market is crucial to the economic recovery. Small businesses need access to capital so they can become an engine for hiring and growth. And Americans will face the challenge of spending enough to boost the economy, while still maintaining a frugal lifestyle, he said.

After the event, teachers said they were inspired. Jack Horan, 60, an economics and history teacher at Oratory Prep School in Summit, said between statewide education budget cuts and layoffs, it was refreshing to be reminded why he entered education in the first place.

"He’s a believer in it, and I’m a believer in it," he said. "Teachers sometimes get a little beaten up and it’s good to hear good news, which is that what we’re doing today is absolutely crucial to the future of the economy."